According to the discounted cash flow method, the value of a bond equals to the sum of the: 4. Present value of the expected coupon payments b. Expected coupon payments and final principal payment c. Present values of the expected coupon payments and the final principal payment. An investment management agreement between a firm and a client is most likely an: a. Ad hoc document b. Internal document c. External document A convertible bond: a. Is a hybrid security b. Usually trades below its conversion value c. Typically gives the issuer the right to convert it into a pre-specified number of shares ock TOA pl The CFA INSTITUTE Code of Ethics stipulates that members must: a. Concentrate of the integrity and viability of domestic capital markets over international markets b. Maintain and improve their professional competence as well as that of other investment professionals c. Reference consensus opinions whenever researching an investment option or acting on an investment decision Which of the following is a need served by participants within the investment industry? a. Custodial services b. Monetary policy actions c. Regulation enforcement n. ACON re et entries A vehicle in which investment professionals promise to implement a specified active strategy in exchange for a single flat fee is known as: a. An index fund b. A hedge fund c. A managed account The underlying asset of a derivative contract can be a: a. Real asset only b. Financial asset only c. Real or financial asset